Amazon's Unconventional Approach to Growth Yields Stunning Results
Amazon has experienced an impressive growth of 66,570% over the past 25 years, turning $10,000 into approximately $6.7 million.
The company has never paid a dividend in its history, opting instead to allocate capital to growth opportunities and increase revenue and profit.
This strategy has clearly worked, with Amazon's leadership team making decisions that prioritize long-term growth over near-term earnings power.
For example, the company invested heavily in building its logistics network and Amazon Web Services (AWS), which now generates significant revenue and operating income.
AWS reported a 39% operating margin last quarter, with its operating income accounting for 60% of the entire company's total.